Clients tell me they previously didn’t consider personal risk insurance because they:
- Couldn’t afford it (33%)
- All of the above (28%)
- Didn’t understand it (20%)
- Didn’t want to think about it (10%)
- Other (8%)
- Didn’t know about it (3%)
Our latest poll asks you about the reasons your clients may have told you they had not considered personal risk insurance products in the past.
This week, the Financial Services Council released new research which found that Kiwis are taking a gamble when it comes to their financial risk (see: Kiwis Push Financial Risk Out of Mind…).
“Over 50 percent of Kiwis said that they disliked having to think about impact of financial risk, and when they do think about it, almost half (43%) then forget about it,” said FSC CEO, Richard Klipin.
The research found only 20 percent of respondents said they had considered a risk of lost income due to illness or serious injury.
“The research indicates that a stigma still remains in New Zealand around discussing, managing and engaging with financial risk,” said Klipin.
It also revealed key issues impacting take-up rates and contributing to under-insurance in New Zealand, with premium affordability and risk prioritisation at the top.
Financial Services Complaints Chief Executive, Susan Taylor, has previously raised her concerns about a consumer trust problem within the industry.
“One of the reasons I think that consumers perhaps don’t trust the industry is that they don’t really understand it” she said.
“I think there’s a lot to be done in terms of better educating consumers about financial products and financial terminology but also more to be done in terms trying to write and communicate with customers in plain language.”
Have your clients told you why they hadn’t taken on insurance coverage sooner? Have you noticed some recurring reasons when they do? Let us know your opinion in the poll above and we’ll report back to you next week with the results…